Practical steps for dealing with a cash-flow crisis.

3 Ways to Fix a Cash-Flow Emergency

Cash-flow crunches are an all too frequent feature of small business life. Sometimes this problem is the result of poor planning, inadequate financial management systems, or insufficient marketing. Your first stop when a cash-flow emergency is looming should be to call a financial expert to review your books and help you to identify ways to cut costs, better manage receivables, minimize taxes and otherwise even out cash-flow.

At other times it really is not your fault. Unexpected market downturns, the loss of a key customer, or even natural disasters can lead to cash-flow emergencies. When forces beyond your control strike, try these cash-flow easing tricks from Colleen DeBaise at Entrepreneur Magazine.

1. Get out there and sell.

  • Make sales calls to current customers.
  • Offer discounts to thwart competitors.
  • Explore different avenues to find new customers.

2. Review your line of credit.

  • Is there room to borrow?
  • Ask your banker to increase your limit.

3. Ask suppliers for favours.

  • Can your suppliers extend your terms?
  • Do they offer credit?

If you haven’t been faced with any cash-flow crises yet this is great news, but it never hurts to be prepared. If you don’t already have a business line of credit, make sure you apply for one now. It will be easier to get one when your debt is low and your cash-flow is good than it will be when times are tight and you have already racked up your credit cards.

 

[Source]http://www.entrepreneur.com/video/226190

The post 3 Ways to Fix a Cash-Flow Emergency appeared first on Kyosei Coaching.

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